What was the total deferred revenue for the Exit franchise in 2024?

According to Exit's 2025 Franchise Disclosure Document, the deferred revenue at the end of 2024 was $224,208 for Upper Midwest Realty, Inc. d.b.a. Exit Realty Upper Midwest. Deferred revenue represents franchise fees received from franchisees that have not yet been recognized as revenue. These fees are typically recognized over the term of the franchise agreement.

This deferred revenue balance reflects the initial, renewal, and assignment franchise fees that Exit has collected but not yet earned as of December 31, 2024. The table also shows the changes in deferred revenue during the year, including additions for initial franchise fees received ($40,000), renewal fees received ($25,750), and assignment fees received ($10,750). It also accounts for a reduction in revenue recognized during the year ($106,088).

For a prospective Exit franchisee, understanding deferred revenue is crucial because it indicates the financial health and stability of the franchisor. A healthy deferred revenue balance suggests that Exit is actively selling franchises and collecting fees, which can be a positive sign. However, it's also important to consider how Exit recognizes this revenue over time, as this can impact their reported financial performance.

It is important to note that this deferred revenue figure pertains specifically to Upper Midwest Realty, Inc., a regional franchisee of Exit Realty Corp. International. The overall deferred revenue for the entire Exit system may be significantly different. A prospective franchisee should inquire about the total system-wide deferred revenue to gain a more comprehensive understanding of Exit's financial position.